Crypto experts are pushing back after billionaire hedge fund manager Ray Dalio renewed his skepticism about bitcoin BTC$72,696.40, arguing that the largest and oldest cryptocurrency lacks the qualities that make gold a reliable store of value.

Speaking on the All-In Podcast, the Bridgewater Associates founder said bitcoin should not be compared to gold because it lacks central bank backing, offers limited privacy and could face an existential threat from future advances in quantum computing. Dalio also pointed to the asset’s public ledger, suggesting transactions can be monitored and potentially controlled.

Dalio, who said last year that he has about a 1% allocation to bitcoin, isn’t new to the criticism of the digital asset. At the time, he said bitcoin faces challenges as a global reserve asset due to its traceability and potential vulnerabilities from quantum computing.

However, industry figures say those critiques reflect longstanding debates around bitcoin, and that the risks Dalio highlighted are already reflected in bitcoin’s much smaller market value compared to gold.

Bitcoin’s risks are also its upside

However, some analysts say those critiques are exactly why bitcoin is worth buying.

“Dalio’s not ‘wrong’ in an absolute sense,” Matt Hougan, chief investment officer at asset manager Bitwise, told CoinDesk. “There really is some risk with quantum and central banks really aren’t buying bitcoin yet.”

But Hougan said those concerns are precisely why bitcoin still trades far below, roughly 4%, of gold’s total market size. Bitcoin’s market cap currently stands at around $1.4 trillion, compared to gold’s estimated $35 trillion

“These criticisms are quite literally the opportunity,” he said. “We invest in bitcoin because we think these things will change over time; that developers will solve quantum risk and central banks will come around.”

“If these critiques did not exist, bitcoin would already be at $1 million a coin,” he added.

‘Tired’ old narratives

Alex Thorn, Galaxy’s head of research, said Dalio’s arguments echo older narratives from bitcoin’s early years.

“Ray Dalio’s Bitcoin critiques are reminiscent of tired narratives from the pre-2017 era,” Thorn said in an email, adding that quantum risks are already being addressed by developers.

Read more: Here’s why the quantum threat for bitcoin may be smaller than people fear

He also said that comparing bitcoin to gold is fair but overlooks how the two assets differ in practice. “Gold might function well stored in a bunker or at the New York Fed, but Bitcoin has actual real-world utility in ways that gold could never match,” he said, pointing to the asset’s growing adoption by both individuals and institutions over nearly two decades.

Monetary shift

Matthew Sigel, head of digital assets research at VanEck, said both gold and bitcoin “have a role” as they represent hard assets from different monetary eras.

“Ultimately, this is a debate between the monetary architecture of the last century and the one emerging in this one,” he said in an email.

Gold, in his view, solved the trust problem in an “analog” financial system built around reported reserves and custodians. Meanwhile, bitcoin addresses that in a digital environment through open-source development and verifiable transactions.

He added that central banks — like the Czech National Bank — are already beginning to experiment with digital asset exposure and that privacy improvements are emerging through better wallet practices and second-layer networks.

Sigel also pushed back on the quantum computing concern, saying the issue affects the entire financial system rather than bitcoin alone. “Quantum risk is a broader cryptography challenge facing the entire financial system, not a flaw unique to bitcoin,” he said.

Investor surveys, he said, also show that younger investors increasingly favor bitcoin, suggesting a gradual shift in “monetary center.”

Read more: ‘Big Short’ Micheal Burry spots 2022 vibes in bitcoin crash

Hyperdrive launches Leverage Markets to address structural instability and cascading liquidations in crypto trading.

Today, Hyperdrive announced the launch of its Leverage Markets, designed to combat the structural risks that make leverage on cryptoassets unstable. 

Crypto leverage relies on real-time market pricing and continuous liquidity. That architecture creates extreme volatility, which may trigger forced and cascading liquidations. The fragile nature of on-chain leverage has resulted in the reluctance of traders to use credit, one of the fundamental drivers of economic expansion and growth. 

Hyperdrive’s Leverage Markets protocol says it removes these vulnerabilities by designing leverage around known redemption prices rather than fluctuating market values. The goal is to create leverage that works more than structural credit than margin trading, with no crashes or no liquidations.

The protocol has emerged at a time when over $180 billion in tokenized treasuries and private credit are live, but can’t be used as collateral safely in existing lending protocols, more than $50 billion in LSTs (stETH, rETH, HYPED etc.) need better capital efficiency than current 70% LTVs allow, and TradFi players need leverage that doesn’t blow up during volatility

Traditional crypto leverage (Aave, Compound, Morpho) values collateral using real-time market prices. When prices drop, liquidators must sell collateral into thin markets, often triggering cascades that wipe out entire positions. Hyperdrive’s model operates differently. Instead of finding out what a token is worth on a DEX at a particular moment, it seeks to know what a particular token can be redeemed for contractually.

For instance, a tokenized treasury fund that’s redeemable for $1.05 USDC is worth $1.05 — even if secondary markets show $0.80 during a panic. According to Hyperdrive, its value is at the redemption rate, not the market price.

When a position needs to close, the protocol executes the actual redemption process (T+30, T+90, whatever the asset specifies) rather than dumping into a DEX. Liquidations become settlements, not emergencies.

According to Cain O’Sullivan, Co-founder of Hyperdrive, the issue isn’t leverage itself, but how the company has built it. When collateral has a contractual redemption path, traders don’t need oracles or DEX liquidity. Positions close deterministically, not by force. 

Hyperdrive’s leverage model introduces three concepts that collectively address the fragility of conventional on-chain lending. Collateral is valued using its redemption rate (contractual NAV), not secondary market prices. This aims to eliminate oracle manipulation risk and NAV-market divergence.

When positions become unhealthy, the protocol initiates redemptions through the asset’s native redemption mechanism.

The self-liquidation concept allows borrowers to close positions atomically by paying a fixed fee, enabling deleveraging without relying on external liquidity. This could be a more cost-effective method than unwinding through DEX liquidity and much faster than manual deleveraging.

Hyperdrive’s leverage can be applied to a range of use cases, including Liquid Staking Tokens (LSTs), tokenized credit, and treasury products.

Hyperdrive’s initial markets are live in testnet, with mainnet launch following security audits. The production deployment is planned for Q2 2026 on Ethereum, with expansion to Avalanche and Hyperliquid expected to follow afterward.

Bitcoin Price Holds Above $71K Amid Rising Tensions

Rising geopolitical tensions and steady ETF inflows are shaping crypto markets this week. Bitcoin trades above $71,000 while analysts assess risks tied to US-Iran hostilities. Meanwhile, capital flows into spot exchange-traded funds signal sustained institutional demand.

everyone said war = crypto dump.$BTC just hit $72,000.

here’s what actually happened:

→ investors sold the rumor (Iran war fears)
→ $BTC held while stocks bled
→ institutions noticed
→ 5 straight days of ETF inflows
→ Binance buy/sell ratio: 1.18 (highest this year)
→… pic.twitter.com/gHp54vvBZ2

— Onchain Daily (previously One Click Contracts) (@OnchainDaily_) March 4, 2026

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BTC back above 71K.
✅ Weekly reclaimed EMA200 (68,343)
But don’t get drunk on green candles:
⚠️ CVD still -454K (move looks mechanical)
⚠️ OI ~89.8K + funding 0.0025 (leverage is back)
Levels: 72 → 74K, fail 70/69 → 66K. pic.twitter.com/2r1YlgLf38

— Fred Velez (@Fredvelezcrypto) March 4, 2026

Bitcoin trades at $71,223 during early Wednesday sessions. The price has gained 7% over the past 24 hours. However, it still struggles to secure a firm break above $70,000 resistance.

The cryptocurrency remains within a narrow range between $65,000 support and $70,000 resistance. Buyers are pushing price action toward the upper boundary of consolidation. Momentum indicators show strength as MACD lines stay above the signal line.

The Relative Strength Index stands near 66, which reflects bullish pressure without overbought conditions. A confirmed breakout above $70,000 could drive price toward $72,000. Conversely, a rejection may pull Bitcoin back toward $67,000 or even $65,000.

Market sentiment also reflects broader geopolitical developments. Tensions between the United States and Iran intensified after military operations in early 2026. Energy markets reacted sharply as oil and gas prices recorded rapid swings.

A Beijing-based historian, Jiang Xueqin, had earlier predicted escalating conflict under a second Donald Trump administration. He argued that Washington could face a prolonged and costly confrontation with Tehran. His projection gained renewed attention after clashes including the 12-Day War of 2025.

The United States and Israel launched Operation Epic Fury in February 2026. Iran responded with missile attacks and expanded regional proxy engagement. As a result, global trade routes and shipping lanes faced renewed security threats.

Ethereum Price Steady Above $1,900 Despite ETF Outflows

Ethereum trades slightly above $1,900 in recent sessions. The asset shows modest gains while broader market capitalization increases. However, spot Ethereum ETFs recorded a net outflow of $10.75 million on March 3.

Despite the net outflow, BlackRock’s ETHA product posted a daily inflow of $41.92 million. This performance indicates selective demand within Ethereum-linked funds. Therefore, capital rotation remains visible across crypto investment products.

Ethereum has faced pressure during Bitcoin’s consolidation phase. Still, it maintains relative stability compared to previous corrections. The broader crypto market cap rose 0.53% to reach $2.34 trillion.

Regulatory developments have also supported digital asset valuations. Lawmakers in Washington continue discussions on clearer frameworks for crypto oversight. Consequently, market participants are weighing both policy direction and geopolitical risk.

US-Iran tensions add complexity to global financial conditions. Energy price volatility often influences inflation expectations and monetary policy outlooks. Such macro factors continue to shape demand for alternative assets including cryptocurrencies.

XRP Gains Modest ETF Inflows as Market Consolidates

XRP-related spot ETFs recorded $7.53 million in daily net inflows. Although smaller than Bitcoin flows, the figure signals steady product interest. XRP price action remains aligned with broader market consolidation.

Bitcoin spot ETFs registered a combined $225 million net inflow on March 3. BlackRock’s IBIT led the market with $322 million in inflows. These figures underscore continued capital allocation into Bitcoin-focused products.

ETF demand has become a significant driver of crypto liquidity. Since regulatory approval, spot products have attracted both institutional and retail capital. This structural shift continues to influence price stability during volatility.

Meanwhile, debate persists over US military strategy and global positioning. Jiang argues that reliance on airpower and precision strikes may not secure long-term dominance. Critics counter that American military capacity remains unmatched despite extended commitments.

Ethereum Price Steady Above $1,900 Despite ETF Outflows

Ethereum trades slightly above $1,900 in recent sessions. The asset shows modest gains while broader market capitalization increases. However, spot Ethereum ETFs recorded a net outflow of $10.75 million on March 3.

Despite the net outflow, BlackRock’s ETHA product posted a daily inflow of $41.92 million. This performance indicates selective demand within Ethereum-linked funds. Therefore, capital rotation remains visible across crypto investment products.

Ethereum has faced pressure during Bitcoin’s consolidation phase. Still, it maintains relative stability compared to previous corrections. The broader crypto market cap rose 0.53% to reach $2.34 trillion.

Regulatory developments have also supported digital asset valuations. Lawmakers in Washington continue discussions on clearer frameworks for crypto oversight. Consequently, market participants are weighing both policy direction and geopolitical risk.

US-Iran tensions add complexity to global financial conditions. Energy price volatility often influences inflation expectations and monetary policy outlooks. Such macro factors continue to shape demand for alternative assets including cryptocurrencies.

XRP Gains Modest ETF Inflows as Market Consolidates

XRP-related spot ETFs recorded $7.53 million in daily net inflows. Although smaller than Bitcoin flows, the figure signals steady product interest. XRP price action remains aligned with broader market consolidation.

Bitcoin spot ETFs registered a combined $225 million net inflow on March 3. BlackRock’s IBIT led the market with $322 million in inflows. These figures underscore continued capital allocation into Bitcoin-focused products.

ETF demand has become a significant driver of crypto liquidity. Since regulatory approval, spot products have attracted both institutional and retail capital. This structural shift continues to influence price stability during volatility.

Meanwhile, debate persists over US military strategy and global positioning. Jiang argues that reliance on airpower and precision strikes may not secure long-term dominance. Critics counter that American military capacity remains unmatched despite extended commitments.

The renewed conflict narrative intersects with financial markets through energy and trade channels. Oil price spikes increase transport and production costs worldwide. As a result, risk assets including cryptocurrencies reflect broader macro uncertainty.

Overall, Bitcoin holds key levels while ETF inflows provide support. Ethereum and XRP show mixed but stable capital flows. Geopolitical tensions, however, remain a defining variable for near-term crypto direction.

Key takeaways:

• Derivatives and onchain data show a lack of bullish conviction, as 43% of Bitcoin holders remain at a loss despite recent price gains.

• Surging AI energy demand is squeezing miner profits to record lows, forcing major listed firms to offload BTC and pivot to computing.

• Traders face a psychological hurdle at $76,000, the average cost basis for major corporate holders like Strategy.

Bitcoin (BTC) surged to a four-week high on Wednesday, potentially clearing a path for a recovery toward the $78,700 monthly close recorded in January. Despite a 22% rally from the $60,000 local bottom on Feb. 6, several onchain and derivatives metrics suggest bears remain comfortable. 

Demand for downside protection through Bitcoin options continues to dominate the market.

Put (sell) options recently traded at a 10% premium relative to equivalent call (buy) instruments. In neutral market conditions, this indicator typically ranges between -6% and 6%, a level last observed in mid-January when Bitcoin traded near $95,000. 

Professional traders appear to fear further downside, while demand for bullish BTC futures remains stagnant; the annualized premium, or basis rate, currently sits below the neutral 5% threshold.

The weakness in Bitcoin derivatives reflects the month-long consolidation following the 32% crash during the first week of February. However, the lack of conviction from bulls even as prices move above $73,000 suggests a deeper hesitation. This cautious mood likely comes from the fact that a significant portion of holders are still stuck in the red.

Currently, 43% of the supply is held at a loss based on the price coins last moved, according to Glassnode data. This share of holders sustaining losses spiked from 30% when Bitcoin traded at $90,000 in late January. Traders fear that investors sitting on these losses will gradually exit their positions as the price recovers, creating persistent overhead sell pressure that could cap further gains.

Another source of concern stems from the Bitcoin mining sector, which has faced significant pressure due to the exponential growth in artificial intelligence demand. Rising energy costs and declining demand for the Bitcoin blockchain registry have pushed miner profitability toward all-time lows. Several major listed mining firms have pivoted toward AI computing, offloading their Bitcoin holdings in the process.

The Bitcoin Hashprice index, which measures the expected daily value of one terahash per second of hashing power, plummeted to $30 on Tuesday, down from $39 three months ago. Investors fear that miners may transition into net sellers after a prolonged period of accumulation. 

Mining companies that previously maintained a Bitcoin strategic reserve are now reportedly eyeing more profitable opportunities in alternative high-performance computing sectors.

Related: MARA exec pushes back on Bitcoin treasury sell-off narrative

Strategy’s $76,000 cost basis could be the turning point for Bitcoin momentum

Strategy (MSTR US) remains the primary example of a Bitcoin-centered balance sheet strategy. After purchasing 720,737 BTC since its initial deployment in August 2020, the company faced scrutiny as Bitcoin dropped below its average acquisition price of approximately $76,000. 

Other publicly traded entities, including Metaplanet (3350 JP) and Twenty One Capital (XXI US), have encountered similar valuation challenges during the current bear market conditions.

While Strategy does not face imminent liquidation risks or a lack of cash for interest payments on yield-bearing assets like STRC, bears recognize that prices above the Bitcoin cost basis incentivize stock issuance without diluting current holders. 

Essentially, market participants looking to suppress the price have strong incentives to keep Bitcoin pegged below $76,000. Therefore, a recovery toward $78,700 may take longer than expected, though momentum could shift in favor of bulls once that key level is breached.